Primary Energy Recycling Corporation Updates Harbor Coal Status

    OAK BROOK, IL, Feb. 11 /CNW/ - Primary Energy Recycling Corporation (TSX:
 PRI.UN) is providing an update to the status of negotiations regarding its
Harbor Coal contract and related impact to senior debt provisions.
    John Prunkl, President of EPCOR USA Ventures LLC (formally known as
Primary Energy Ventures LLC), the Manager said, "We continue to work
proactively with our customer on completing the proposed coal tolling
amendment to the Harbor Coal agreement. There remains strong interest on both
sides to complete the amendment and recent discussions have been productive
and in good faith. Currently, there remains a single open item to resolve and
the tolling amendment documentation is otherwise complete. Based on recent
dialog and the customer's senior management review we remain optimistic that
an amendment will be completed that will greatly simplify our partnership
relationship. The amendment we have proposed provides unitholders with
predictable cash flow by eliminating commodity pricing volatility and
inventory adjustments. In addition, the amendment contemplates a long term
extension to the agreement."
    Mr. Prunkl further reported, "The other facilities continue to perform in
accordance with expectations. North Lake has operated well since the unplanned
outage in early 2007. Portside's overhaul has proven successful. Cokenergy and
Ironside are both operating normally."
    If the Harbor Coal amendment is not in effect on February 29, 2008 the
terms of the senior debt agreement may or may not, depending on the Company's
operational results, require an increase in interest costs and the
introduction of mandatory quarterly principal repayments equal to a portion of
excess cash flow during the period (the "Cash Sweep"). Even if the increased
interest cost and Cash Sweep provisions come into effect and assuming normal
operations for the four recycled energy facilities and nominal performance
from Harbor Coal, Management anticipates that there will be no adverse impact
on the Company's distribution policy. Moreover, once the Harbor Coal amendment
is completed, even if after February 29, 2008, these provisions would cease to
    Michel Lavigne, Chair of the Board of the Company said "While we remain
optimistic that the amendment to the Harbor Coal agreement will be completed,
we did explore options to replace the senior debt with new financing but
determined the turbulence in the lending markets makes our current credit
package more advantageous to unitholders than a new market based package.
Therefore, we will explore refinancing once the Harbor Coal amendment is
complete and the markets improve. It is the Company's intent to utilize
existing cash balances to meet the obligations of increased interest costs and
cash sweep, if any, and maintain current distribution levels."

    The Issuer owns a majority interest in Primary Energy Recycling Holdings
LLC ("Primary Energy"). Primary Energy, headquartered in Oak Brook, Illinois,
indirectly owns and operates four recycled energy projects and a 50% interest
in a pulverized coal facility (collectively, the "Projects"). The Projects
have a combined electrical generating capacity of 283 megawatts and a combined
steam generating capacity of 1.8 MMlbs/hour. Primary Energy creates value for
its customers by capturing and recycling waste energy from industrial and
electric generation processes and converting it into reliable and economical
electricity and thermal energy for its customers' use. For more information,
please visit us at

    Forward-Looking Statements

    When used in this news release, the words "anticipate", "expect",
"project", "believe", "estimate", "forecast" and similar expressions are
intended to identify forward-looking statements. Such statements are subject
to certain risks, uncertainties and assumptions pertaining, but not limited,
to operating performance, regulatory parameters, weather and economic
conditions and the factors discussed in the Company's public filings available
on SEDAR at These forward-looking statements are made as of the
date of this press release and the Company assumes no obligation to update or
revise them to reflect new events or circumstances.

For further information:

For further information: V. Michael Alverson, Chief Financial Officer,
Primary Energy Ventures, (630) 371-0639,

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